Data sources and methods carbon dioxide emissions from a consumption perspective indicator: chapter 2

2. Description and rationale of the Carbon Dioxide Emissions from a Consumption Perspective indicator

2.1 Description

The Carbon Dioxide Emissions from a Consumption Perspective indicator provides a view of the impact of Canada's consumption of goods and services, regardless of where they are produced, on the levels of carbon dioxide (CO₂) released into the atmosphere. It is accounting for emissions associated with products and services consumed in Canada and produced either domestically or abroad. The indicator also reports on Canada's CO₂ emissions resulting from the production of goods and services that are consumed in Canada, as well as emissions produced in Canada and exported to other countries.

2.2 Rationale

The most common method of accounting for greenhouse gas (GHG) emissions is to assign responsibility for the emissions to the emitting entity, sector or region. This approach (often referred to as production-based emissions accounting) is used by Canada and other countries to report their national GHG emissions inventory to the United Nations Framework Convention on Climate Change. It is also the approach underlying the national and global GHG indicators in the Canadian Environmental Sustainability Indicators program, which are based on Canada's official National Inventory Report: Greenhouse Gas Sources and Sinks in Canada.

Production-based emissions account for emissions physically occurring in Canada. They do not take into account the emissions associated with products imported and consumed in Canada, but include emissions associated with the production of products and services exported from Canada responding to a demand abroad.  

The location where GHG emissions originate has little or no impact on the resulting influence on climate change. For example, reducing production in a country and purchasing more products abroad may reduce emissions domestically, but the effect on worldwide emissions depends on whether the production taking place in other countries is more or less carbon-intensive than the domestic production. Focusing on consumption- or demand-based emissions accounting can support climate change policy by calling attention to the influence of household, business, and government choices on emissions.